NKG Flash note – NOT RATED

NAM KIM STEEL JSC (NKG VN)

NKG held its 2026 Annual General Meeting with the following key points:

– 2026 Business plan: NKG set an ambitious FY2026 plan, targeting revenue of VND 22 tn (+48% YoY) and PBT of VND400 bn (+66% YoY), driven primarily by volume expansion to 1.1 mn tons (+41% YoY) and a modest improvement in margins supported by higher selling prices.

– Dividend policy: 10% stock dividend.

• Nam Kim Phu My project: The coated steel plant is expected to commence operations in 3Q2026 (c.6-month delay vs. initial plan), with total capex of VND 6.2 trillion and capacity of 1.2 million tons/year, focusing on high-value-added coated steel for appliances, automotive, and industrial applications. Management highlights limited competition and positive long-term prospects, though detailed financial disclosures remain pending.
• Rights issue: NKG plans a 25% rights offering at VND 12,000/share, expected to raise ~VND 1.5 tn. Proceeds will be allocated to equity injection into the Phu My project and/or working capital, with execution targeted in 2026–2027, subject to regulatory approval.

Quick comment: Amid challenging export conditions and intensifying domestic competition in an oversupplied coated steel market, NKG’s ability to meet its targets will depend heavily on the execution and ramp-up efficiency of the Phu My plant. While volumes may recover from 2H2026, margin expansion and market share gains remain subject to further validation before confirming a sustainable growth trajectory.